Dean Russell, Conservative MP for Watford has said that the message needs to go to businesses that IR35 is not a reason for them to discriminate against contractors.
Mr Russell said this at the Houses of Parliament during the ‘Parliament Street Skills Summit-Closing the Gap’ talk which discussed the UK’s growing skills shortage.
Mr Russell said:
I am very aware of IR35 and have spoken to both Chancellors (Sajid Javid and Rishi Sunak) about it. The message needs to go to businesses not to discriminate against contractors.
The legislation is there to close a tax loop hole, it is not a reason to discriminate against contractors.
Today’s news on Off-Payroll is exceptionally disappointing and demonstrates a tin-eared approach has been taken by the Chancellor.
Already we are seeing firms unfairly classify self-employed workers as ‘deemed employees’ which means they are taxed as employees, but yet receive none of the rights of employment.
Also at the end of February, the Government concluded its review of IR35 which again was met with criticism as contracting groups called it out as “lip service”. Mr Sunak also said the first 12 months of the legislation will not be “heavy handed”.
Mr Sunak said:
I’ve spent time with HMRC to ensure they are not going to be at all heavy handed for the first year to give people time to adjust as well, which I think is an appropriate and fair thing to do.